site.btaUPDATED MPs Cut Party Subsidy per Vote, Adopt Pension Changes, Reject Higher Debt Ceiling

Parliament on Wednesday approved at second reading amendments to the so-called budget extension law for 2026, reducing the state subsidy per vote received by political parties, rejecting a higher debt ceiling and discontinuing the COVID supplement for pensions granted after July 1.

Until the adoption of the 2026 State Budget Act, the state subsidy per valid vote received under the Political Parties Act will be EUR 4.09 between January 1 and April 29, 2026, and EUR 3 between April 30 and December 31, 2026, lawmakers decided.

Progressive Bulgaria abandoned its initial proposal to increase the debt ceiling by up to EUR 3.8 billion before the adoption of the regular state budget for 2026.

Parliament also decided that the COVID supplement will not be paid to pensions granted after July 1, 2026. The supplement will be retained for all pensions already awarded and will be indexed by the coefficient used for annual pension adjustment under the so-called Swiss rule.

Lawmakers further decided that, as of July 1, 2026, the minimum pension for length of service and age will amount to EUR 347.51.

Earlier on Wednesday, at the Council of Ministers meeting, Progressive Bulgaria leader and Prime Minister Rumen Radev commented on the opposition’s uproar after the parliamentary group proposed the removal of COVID-related supplements for newly granted pensions. He argued that "not a single euro, not a single cent will be taken away from Bulgarian pensioners."

"Politicians who brought pensioners and thousands of working people to the brink of social catastrophe are today suffering from amnesia and assuming the role of moral guardians," the Prime Minister said. He announced that, following the meeting, Deputy Prime Minister Galab Donev would brief journalists on "the unpleasant reality - the state of the public finances". A reality that is the result of years of negligence, incompetence, voluntarism, populism and plunder, the Prime Minister added.

Following the council of ministers meeting, Deputy Prime Minister and Finance Minister Galab Donev told a news briefing that pensions will be increased by 7.8% from July 1 under the so-called Swiss rule. With this rule, the average increase rate is based on the average annual inflation and average annual contributory income for the previous year. Donev said that over the past two years pensions had not been updated under the Swiss rule and only one of its two components had been applied. "Governments had made decisions that suited them," he said, stressing that the current Government is not shirking responsibility.

Regarding the COVID supplement of BGN 60 paid with pensions, Donev recalled that it was introduced in 2022 and that governments had made several attempts to discontinue it, adding that anti-COVID measures have been discontinued in all other countries. Donev said the COVID supplement will not be paid for newly granted pensions after July 1. For all pensions already granted, it will remain at BGN 60 and will be indexed by the coefficient used for updating pensions under the Swiss rule from July 1, he said.

Speaking to journalists at the 17th International Defence Equipment and Services Exhibition, Hemus 2026, in Plovdiv, President Iliana Iotova expressed confidence that the government would prioritize support for the most vulnerable groups in the country and stressed that there are no plans to cut pensions or change Bulgaria's maternity policy, which she described as one of the best in Europe. A broader review is needed to identify the biggest weaknesses and to determine where budget reserves may exist, she said, adding that this includes spending on major regional development projects.

Speaking to reporters in the parliamentary lobby, Continue the Change party leader Assen Vassilev described as "outrageous and unconstitutional" the discontinuation of the COVID supplement for pensions granted after July 1, approved by the National Assembly. Vassilev commented: "If your pension decision is issued on June 30, with the same length of service, average salary and conditions, you will receive EUR 30 more than you would if it were issued on July 1."

The former finance minister noted that 110,000 people are expected to retire this year, and 55,000 of them will do so in the second half of the year. "Each of them has the right to file a complaint with the Commission for Protection against Discrimination (CPD) and recover the EUR 30. Apart from creating red tape for pensioners, the law has achieved absolutely nothing," Vassilev said.

He promised that Continue the Change will provide legal assistance to ensure that all these complaints reach the CPD. He urged citizens: "If you are awarded a lower pension after July 1, go directly to a Continue the Change office and we will help you submit your complaint to the commission and receive your EUR 30 per month."